Methods and systems for prepaid mobile payment staging accounts

ABSTRACT

Systems and methods for provisioning a prepaid mobile staging account to consumer mobile devices are described that allow issuer financial institutions to quickly and efficiently launch NFC device payment programs. In an embodiment, a staging account provider computer receives a request to provision a prepaid mobile payment staging account that includes identification information and associates the identification information with a prepaid mobile staging account. The staging account provider computer then identifies a financial account of the consumer held by an issuer financial institution (FI), generates a consumer prepaid mobile staging account loaded with funds from the financial account of the consumer, and transmits a confirmation message to the consumer&#39;s mobile device indicating successful setup.

CROSS REFERENCE TO RELATED APPLICATION(S)

This application claims the benefit of U.S. patent application Ser. No.14/050,448, filed on Oct. 10, 2013, which is now U.S. Pat. No. 9,542,673issued on Jan. 10, 2017, and of U.S. Provisional Patent Application No.61/711,922 filed on Oct. 10, 2012, the contents of which are herebyincorporated by reference for all purposes.

BACKGROUND

Payment cards such as credit or debit cards are ubiquitous. For decades,such cards have included a magnetic stripe on which the relevant accountnumber is stored. To consummate a purchase transaction with such a card,the card is swiped through a magnetic stripe reader that is part of apoint of sale (POS) terminal. The reader reads the account number fromthe magnetic stripe. The account number is then used to route atransaction authorization request that is initiated by the POS terminal.

In pursuit of still greater convenience and more rapid transactions atPOS terminals, payment cards have more recently been developed thatallow the account number to be automatically read from the card by radiofrequency communication between the card and a so-called “proximityreader” which may be incorporated with the POS terminal. In such cards,often referred to as “proximity payment cards” or “contactless paymentcards”, a radio frequency identification (RFID) integrated circuit (IC,often referred to as a “chip”) is embedded in the card body. A suitableantenna is also embedded in the card body and is connected to the RFIDchip to allow the chip to receive and transmit data by RF communicationvia the antenna. In typical arrangements, the RFID chip is powered froman interrogation signal that is transmitted by the proximity reader andreceived by the card antenna.

MasterCard International Incorporated, the assignee hereof, hasestablished a widely-used standard, known as PayPass™, forinteroperability of proximity payment cards and proximity readers. Otherproximity payment schemes are also increasingly in use.

It has been proposed that the capabilities of a contactless payment cardbe incorporated into a mobile telephone, thereby turning the mobiletelephone into a contactless payment device. These devices are referredto herein as near-field communication (“NFC”) handsets or NFC mobiledevices.

Currently, there is significant effort and cost required for financialinstitutions that issue financial accounts to consumers (“issuers”) tostart issuing their financial accounts (such as credit card and debitcard accounts) on NFC handsets. The effort, complexity and cost todevelop systems necessary for deploying issuer financial accounts to amobile device are significant entry barriers for many issuers. Manyissuers simply desire to gain some experience with such a new formfactor before committing to the high cost and effort of a fullcommercial roll out. Also, some issuers are seeking low initial entrycosts and low effort because the number of NFC handset financialaccounts may be very low for the foreseeable future. It would thereforebe desirable to provide an intermediate solution for issuers that iscost effective and relatively quick for deploying payment accounts forNFC devices so that the issuers need not make an immediate large moneyand time commitment to invest in the systems that ultimately will berequired.

BRIEF DESCRIPTION OF THE DRAWINGS

FIGS. 1A-1B are schematic block diagrams of a system pursuant to someembodiments in accordance with the invention;

FIG. 2 is a schematic block diagram of the mobile telephone shown inFIGS. 1A and 1B;

FIG. 3 is a block diagram of the components of a staging account systemfor accommodating mobile device provisioning and payment transactionsaccording to an embodiment of the invention;

FIG. 4 is a block diagram illustrating a staging account providercomputer system according to an embodiment of the invention;

FIG. 5 illustrates a process for mobile staging account provisioningaccording to an embodiment of the invention; and

FIG. 6 illustrates a process for providing a mobile staging accountaccording to another embodiment of the invention.

DETAILED DESCRIPTION

Pursuant to some embodiments of the present invention, prepaid stagingaccount systems and methods are provided that allow issuer financialinstitutions to quickly and efficiently launch NFC device paymentprograms. In some embodiments, the prepaid staging account is a generalpurpose reloadable prepaid account that is configured to look likeanother issuer's product, with that issuer's card image, messaging andbranding (as used herein, the issuer is referred to as the “primaryfinancial institution” or “primary issuer”). The prepaid staging accountis reloaded or “topped-up” from a pre-determined credit or debit accountoperated by the primary issuer (the issuer that issued the originalpayment account that the staging account appears as). The primary issuerbenefits in that they do not need to support NFC programs (such asPayPass™, which is service offered by MasterCard InternationalIncorporated), chip transactions or Mobile PayPass™. The staging accountissuer (the issuer that provides the prepaid staging account) useseconomies of scale to cover the development effort required to offer theservice, and thus may provide staging account services to a number ofdifferent primary issuer financial institutions.

As used herein, a “primary issuer” may be a bank or financial servicesinstitution and is the owner of the consumer's or end customers' primarycard relationship. A “staging account provider” is the entity that willissue, distribute and manage a pre-paid account on a mobile device onbehalf of the primary issuer. Thus, the staging account provider isexpected to bring to the primary issuer the necessary relationships andpractical knowledge to deploy mobile accounts so that the primary issuercan be provided with the ability to deploy mobile financial accounts totheir customers in a cost effective and timely fashion. In addition,“mobile infrastructure components” may include one or more entities thatwill provide the functionality to personalize and manage the customer'shandset or mobile device. In some implementations, the mobileinfrastructure components may include one or more of a Trusted ServiceManager (TSM), a Data Preparation Service (DPS), a Mobile NetworkOperator (MNO) and a post issuance management service(s).

In some embodiments, the prepaid staging account service may be providedas a business to business service, wherein providing staging accountservices is intended to be a commercial service offered to existing cardaccount issuers allowing them to deploy a pre-paid mobile account thatis attached to an existing cardholders “card-based” account. The stagingaccount may be attached to any existing card account, such as a creditaccount, a debit account or a pre-paid account, and that card accountmay be based on a magnetic-stripe technology, or EMV technology, orPayPass™ technology. In particular, in some embodiments the service isprovided under a direct relationship with, and paid for by, an existingcard issuer or primary issuer. Thus, the staging account provider maysell or otherwise provide the service to one or more primary issuers whothen may promote the product to their cardholders. The staging accountis therefore constructed such that the consumer (the cardholder) has adirect relationship with only the primary issuer and not the stagingaccount provider.

In some embodiments, the staging account is an online pre-paid accountthat is configured effectively as a companion product to an existingcustomer's payment card account. But in some implementations the stagingaccount primary account number (PAN) that is issued for use with thecardholder's mobile device is different than the PAN of the cardholder'spayment card account. The cardholder's mobile device therefore does notreplace the payment card account but instead may be considered as acompanion device to it. Accordingly, the staging account may be brandedand marketed as a sub-account of a cardholders existing payment cardaccount. The pre-paid balance used to authorize and settle transactionsusing the staging account, although implemented as an on-line prepaidbalance, can effectively be considered as an “off-line balance” to thecard account. However, in accordance with some embodiments, thecardholder may utilize his or her mobile device to monitor and top-upthe balance that is available for the staging account. As will beexplained in more detail below, cardholders may be able to utilizeand/or authorize the use of an automated top-up function so that balancemanagement from the cardholder is not necessary.

In some embodiments, the staging account is to only be funded from thecustomer's card account that was issued by the primary issuer. Thus,multiple funding source options are not available (in contrast togeneral purpose reloadable (GPR) prepaid accounts). Such operation isfundamentally in accordance with the staging account being configured asa companion product to an existing card account. Since the fundingsource is fixed, there is no option provided to allow other fundingsources to be set-up. Thus, when the cardholder undertakes a top-up oftheir staging account, it is not necessary to select or enter details ofthe funding source because only one funding source exists.

Such a pre-paid staging account is used to achieve complete separationfrom the systems of the primary issuers and that of the account deployedto the mobile device. Thus, for example in the case of MasterCardInternational, Inc. requirements regarding a MasterCard Mobile PayPass™(MMPP) account that is issued to the mobile device, the primary issuerdoes not need to process “MChip” or PayPass™ transactions. For manyprimary issuers this would otherwise require a very significant upgradeof their systems with associated costs, in addition to providingsignificant efforts required for mobile accounts issuance.

In order to meet the objective of providing a primary issuer with theability to deploy mobile accounts to their customers in a cost effectiveand timely fashion, the staging account provider may offer one or more“packaged” options or “staging account programs”. Such staging accountprograms include most or all of the technical development and businessagreements that are required to provide a mobile account to a consumer'smobile device. Thus, a suitable staging account program allows a primaryissuer to rapidly launch their mobile accounts program.

Pursuant to some embodiments, the cardholders or users (who are alsomobile device users) will enjoy a user experience such that they willlikely be unaware that a third party staging account provider isinvolved in the process (although in some implementations therelationship between the primary issuer, the staging account providerand the consumer will be expressed in cardholder materials that includeterms and conditions regarding the service). For example, in someembodiments, the primary issuer may refer to the staging account as the“cardholders mobile account” when providing transaction informationand/or documentation to a customer. In addition, in some implementationsthe primary issuer does not permit internet purchases by use of a mobiledevice, and places limitations on the maximum monetary amount allowedper transaction. Thus, the primary issuer may further describe and/ormarket the mobile account as being a “specially protected” accountsuitable for lower value payment transactions with added securityprotection to prevent fraud.

When the cardholder uses the payment card issued by the primary issuer,all authorization and settlement messages are routed to the primaryissuer during normal transaction processing. In accordance with theembodiments described herein, when a cardholder uses the payment accounton his or her mobile device, all authorization and settlement messagesare routed to the staging account provider. The staging account providerauthorizes and settles these transactions using the pre-paid balancethat has been funded from the cardholders account with the primaryissuer.

Reference is now made to FIG. 1A in which a system 100 pursuant to someembodiments is shown. The system 100, as depicted, includes a number ofentities or devices that interact to provision or initialize a prepaidstaging account for use by a mobile device 102 belonging to a consumeror customer. Pursuant to some embodiments, the mobile device 102 is anNFC enabled device, the details of which are described herein inconjunction with FIG. 2. The mobile device 102 is operated by a consumerwho wishes to add payment functionality to the mobile device 102. Whileonly a single mobile device 102 is shown in FIG. 1, those skilled in theart, upon reading this disclosure, will appreciate that many mobiledevices may be involved in the system.

The mobile device 102 is in communication with a mobile platform 104 anda staging account provider 106, both of which may include one or morecomputers and/or computer systems. Communication between the mobiledevice 102 and the mobile platform 104 and the staging account provider106 may be over one or more network communication links, such as, forexample, wireless communication links. For example, the communicationbetween the mobile device 102 and the mobile platform 104 may be over acellular network connection, the Internet (or other direct wired, orwireless connection, including without limitation, WiFi, near fieldcommunication (NFC) or the like), and communication between the mobiledevice 102 and the staging account provider 106 may be over theInternet, a computer network, or the like.

The staging account provider 106 is in communication with one or moreissuing financial institutions 112 over a payment network 110. In someimplementations, the issuer financial institution 112 has entered into acommercial agreement with the staging account provider 106 that includesterms including how exceptional transaction items will be handled. Theterms may also define consumer enrollment options, cardholder charges,cardholder terms and conditions, marketing the solution, and enrollingcardholders who wish to benefit from a mobile payment account. The termsalso indicate the entity responsible for carrying out customer serviceand how this is communicated to the cardholder (which may be undertakenin-house by the issuer or implemented with the assistance of servicesprovided by the staging account provider). The primary issuer alsoagrees to the type of digital wallet and User Interface (UI) that willbe provided to cardholders, together with any branding elements and howthe card image is to appear on the mobile device. In addition, theprimary issuer agrees to the top-up methods that will be available tocardholders and any transactional, daily or weekly limits that may beimposed, and agrees to the deployment methods to be used to delivermobile accounts to the cardholder's handset, and which handsets and/ornetworks will be supported (which may be defined by a staging accountprogram). The primary issuer must also sign-off on such matters as fraudliabilities, lost payment card and/or mobile device scenarios, howreturns (for example, of purchased merchandise) and/or charge-backs arehandled, and how transactions declines due to insufficient funds arehandled.

Referring again to FIG. 1A, The payment network 110 may be, for example,a payment network such as the BANKNET® network operated by MasterCardInternational Incorporated or other payment networks (such as theVISANET® network operated by Visa International Service Association).Payment networks are operable to route payment card account purchasetransactions from acquirer financial institutions (that serve merchants)to issuer financial institutions, and also support the transfer of fundsfrom a funding account at the issuer financial institution to adestination account (which may be a merchant account) at a different orthe same financial institution. In some implementations, the stagingaccount provider 106 is associated with a prepaid financial institution118 which is the financial institution issuing and maintaining thestaging accounts pursuant to some embodiments.

As depicted in FIG. 1A, several interactions occur to allow a prepaidstaging account to be provisioned on a mobile device 102. Forconvenience and ease of exposition, the interactions are labeled asarrows or items “1”-“5” and are numbered in a sequence which representsone possible sequence for provisioning a prepaid staging account. Thoseskilled in the art will appreciate that other sequences or flows may beused.

At item “1” (which may occur after a pre-paid staging accountrequest—not shown—by a consumer or user of a mobile device has beenmade), an over-the-air (“OTA”) message may be received by the mobiledevice 102 that includes data used to provision a prepaid stagingaccount on the device 102. In some implementations, the data forprovisioning the prepaid staging account is transmitted from a mobileplatform 104. The mobile platform 104 may be operated by or on behalf ofan entity such as MasterCard International Incorporated as a service toprovision accounts on mobile devices. For example, in some embodimentsthe mobile platform 104 is or includes an over-the-air (OTA)provisioning service that allows NFC payment applications to beconfigured and transmitted to a mobile device 102 for installation andusage by the mobile device 102. As a specific illustrative (but notlimiting) example, the mobile platform 104 may include one or moreserver computers operating the MasterCard Mobile Over-The-AirProvisioning Service (“MOTAPS”) to cause the remote personalization of apayment application on mobile devices 102.

Pursuant to some embodiments, the payment account provisioned at step“1” is associated with a prepaid staging account, which includes accountinformation associated with the cardholder (the owner or operator of themobile device 102) and an associated prepaid staging account held at astaging account provider 106 (or more particularly at a prepaid issuer118 associated with the staging account provider 106). The paymentaccount information associated with the mobile device 102 allowstransactions involving the mobile device 102 to be routed to the stagingaccount provider 106 and the prepaid issuer 118. For example, thepayment account information may include a routing identifier (such as abank identification number or “BIN” associated with the prepaid issuer118) that causes transactions involving the payment account to be routedto the staging account provider 106 and prepaid issuer 118 forprocessing (as will be described further below in conjunction with apurchase transaction depicted in FIG. 1B). Thus, in some embodiments,the data transmitted to the mobile device 102 may include metadataassociated with the funding account, for example, account descriptiondata that may include a card layout descriptor (which informs thepayment application how to present information associated with thefunding account on the display device) and/or product type data thatindicates the type of funding account (such as a credit card account,debit card account, prepaid debit card account, or other financialproduct type). The product type data may be used, for example, tocontrol the type and amount of interchange associated with transactionsinvolving the payment application.

At item “2”, an interaction is shown between the mobile device 102 andthe staging account provider 106. This interaction may occur after themobile device 102 has initiated communication with the mobile platform104 based on a consumer's indication of interest to begin theprovisioning process, and may be a request to associate a desiredfunding account with the staging account. The interaction at “2” may beover a cellular network (e.g., “over-the-air”) or it may be over a dataconnection (such as over the Internet). In some embodiments, theinteraction labeled as item “2” may occur automatically after completionof the interaction labeled as item “1” (e.g., a consumer operating amobile device 102 may automatically be prompted to provide informationabout a desired funding account to be associated with the prepaidstaging account as soon as the initial provisioning of the account iscompleted).

Processing associated with item “2” may include presenting the customerwith a series of user interfaces (displayed on a display screen of themobile device 102) prompting the customer to enter informationassociated with a funding account to be used to fund the prepaid stagingaccount. The funding account may be a financial account associated withcredit card, debit card, or a bank account issued by an “issuer” 112 (or“primary issuer”). Once the customer enters information associated withthe funding account, the customer may be prompted to enter any otherinformation required to comply with relevant regulatory requirements(such as “know your customer” or “KYC” information). The staging accountprovider 106 may cause a request message to confirm the status of thefunding account (e.g., as a request transmitted over the payment network110 at item “3”). The payment network 110 routes the authorizationrequest to the primary issuer 112 (the issuer of the funding accountselected by the customer) for authorization. If the request isauthorized, an authorization response is provided by the primary issuer112 (e.g. a response transmitted over the payment network 110 at item“4”) and returned to the staging account provider 106. The fundingaccount is then associated with the prepaid staging account, allowingthe prepaid staging account to be used to conduct transactions as if itwere the funding account.

A confirmation response is transmitted to the mobile device 102 at item“5” (e.g., to cause a payment application on the mobile device 102 to beupdated for use to conduct payment transactions using the prepaidstaging account). In some embodiments, the confirmation responseprovides information to the customer indicating the amount of funds thatare available for use in the prepaid staging account.

Pursuant to some embodiments, the confirmation response (or a separatemessage) also includes information about the funding account, such ascard image information associated with the funding account (e.g., if theselected funding account was the customer's “United SignatureMasterCard” issued by Chase Bank, the confirmation response may includethe card image for that card, so that the payment application on thecustomer's mobile device 102 may appear as if it is the customer's“United Signature MasterCard”). That is, the payment application on themobile device 102 appears to the customer or mobile device user as if itis the funding account and not the prepaid staging account.

In some embodiments, a mobile device provider (not shown, which mobiledevice provider may be associated with the mobile platform 104) maypartner with a mobile staging account provider 106 and with one or moreissuers 112 to offer mobile devices for sale to consumers that arepre-loaded with a prepaid mobile staging account application program. Aconsumer who purchases such a mobile device, such as a mobile telephone,may initialize or run the pre-loaded prepaid staging account applicationprogram to setup his or her own prepaid staging account. In this case,by definition the consumer already has a financial account with theissuer FI associated with or sponsoring the mobile devices that includethe preloaded prepaid mobile device staging application program. Thus,in some embodiments, the consumer may touch an icon on a touch screen ofhis or her mobile device 102 to launch the preloaded prepaid mobilestaging account application program, and then be presented with one ormore user interface screens. The interface screens may include one ormore blank data fields for the consumer to enter identificationinformation which can be matched to a funding account at an issuer FIassociated with the mobile device provider. The funding account may be afinancial account associated with credit card, debit card, or a bankaccount issued by the consumer's issuer FI 112. In case one or morefunding accounts are found, the consumer may be prompted to select whichaccount to use to fund his or her prepaid mobile staging account. Oncethe consumer provides adequate information, the prepaid staging accountwill be established, and the funding account will be used to fund it.

In some embodiments, data entered by the consumer during enrollment forthe mobile staging account service is transmitted to the staging accountprovider 106, which then confirms that the funding account exists (forexample, the staging account provider may transmit a message via thepayment network 110 to the consumer's issuer FI 112 requesting accountverification). After the staging account provider receives anauthorization message from the consumer's issuer FI, the funding accountis associated with a prepaid mobile staging account. A confirmationmessage may then be transmitted by the staging account provider 106 tothe consumer's mobile device indicating successful setup, and in someembodiments, indicating the amount of money funding the prepaid mobilestaging account. After such a confirmation message is transmitted,prepaid mobile staging account is ready for use by the consumer toconduct purchase transactions as if it were the funding account.

Reference is now made to FIG. 1B which is a further view of the system100 and which depicts several interactions that may occur during atransaction involving the mobile device 102 and the prepaid stagingaccount that was already created (and funded) as described above, forexample, with regard to FIG. 1A. In particular, FIG. 1B showsinteractions between a mobile device 102, a merchant 114, an acquirerfinancial institution 116, a payment network 110, a staging accountprovider or processor 106 and a prepaid financial institution 118. Theinteraction begins when a customer having a mobile device 102 with aprepaid staging account application stored thereon (that has beeninitialized or provisioned pursuant to a process such as shown in FIG.1A) chooses to use his or her mobile device 102 (and thus the prepaidstaging account) to conduct a purchase transaction at a merchant 114.

Accordingly, at arrow “6”, the consumer may present, tap or wave themobile device 102 on or proximate to a NFC reader device (not shown)associated with the merchant 114 during a purchase transaction (forexample, tapping the mobile device near a point-of-sale (POS) devicehaving an integrated NFC reader). The NFC reader device and the mobiledevice 102 interact to provide payment account information from themobile device 102 to the NFC reader device for use in the transaction.The merchant 114 then transmits or provides the payment accountinformation in a transaction authorization request message to anacquirer 116 (at “7”). The acquirer transmits (at “8”) the transactionauthorization request message to a payment network 110 for routing tothe staging account provider or processor 106. The transactionauthorization request message may be routed to the staging accountprovider 106 based on the bank identification number (BIN) associatedwith the payment account provided from the mobile device 102. Thestaging account provider 106 may check with the prepaid financialinstitution (at “9”) to determine if the consumer's payment account hasadequate funds for the purchase transaction. If the payment account hassufficient funds to complete the transaction, an authorization responsemessage is returned from the staging account provider or processor 106to the acquirer 116 (at “10”—through payment network 110), and theacquirer then passes the authorization to the merchant 114 (at “11”) tocomplete the transaction. In some embodiments, clearing and settlementprocessing for the transaction are performed using standard paymentprocessing techniques.

While the acquirer 116 may interact with the prepaid staging accountprocessor 106 over the payment network 110, in some embodiments, one ormore alternate paths may be provided. For example, in some embodimentsthe acquirer 116 may interact directly with the staging account provider106 (indicated as item “12”) instead of going through a payment network110.

In some embodiments, the functionality developed by the staging accountprovider is generic, but it should be recognized that one prepaidconstruct and one set of partnerships will not meet the requirements ofall primary issuers. Consequently, in order to meet the objectives ofthe staging account which includes easily and quickly deploying mobileaccounts to the cardholders of a primary issuer, the staging accountprovider may develop several “staging account programs” at least one ofwhich can be utilized immediately by a primary issuer. Such stagingaccount programs may represent several pre-packaged solutions that meetthe requirements of one or more primary issuers in a particular region.For example, the staging account provider may initiate a “MasterCardmobile prepaid program” (MMPP) for deployment to a secure element of themobile device that is denominated in the appropriate currency for theprimary issuer's market, and may have one or more user interfaces (UI's)and digital wallets for one or more handset ranges that have been set upand approved for deployment. In addition, the staging account providermay have agreements with one or more secure element owners (such asMobile Network Operators (MNOs)) to allow the staging account to beloaded into their universal integrated circuit cards (UICCs) orsubscriber identity module cards (SIM cards), and/or with one or moremobile device (handset) providers to allow the staging account to beloaded into an embedded secure element (SE) resident within the mobiledevice. The staging account provider will have also integrated with allparties necessary (for example, Trusted Service Managers (TSMs) and thelike) to allow the staging account to be provisioned to a consumer'smobile device, and have a range of supporting services (includingdocumentation) available to the primary issuer that covers top-ups(funding of the mobile account), customer support, and enrollment. Thestaging account provider may also have a draft agreement available forconsideration by primary issuers that includes commercial terms forengaging the staging account provider and for utilizing an appropriatestaging account program. Although a staging account provider mayinitially go to market with only one staging account program, it iscontemplated that over time the staging account provider will developmultiple staging account programs for consideration by primary issuers,and will have the ability to develop bespoke or customized programs whenand where the business opportunity justifies it.

In order to meet some primary issuer requirements, for example, anexisting staging account program may need to be extended to add anadditional secure element (SE) owner within an existing market, or a newstaging account program may need to be created where a program has notalready been created for the market required. This may result inadditional costs and setup time, but the staging account provider isexpected to be able to deliver in a cost effective and timely manner byusing their experience and existing market relationships.

The staging account provider may also offer one or more methods toprovision the secure element of a mobile device. Although over-the-air(OTA) provisioning is ideal for mass deployment opportunities, it can bea complex and expensive provisioning option to set up. Thus, in the caseof the primary issuer intending a small mobile staging account trial (orlimited issuance), other options may be more cost effective. Forexample, if a handset and UICC is being issued to the cardholder onsign-up to the mobile service, then pre-configuration of the mobiledevice for a staging account prior to dispatch may be an option. Incases where the cardholder already has a mobile handset and UICC thatincludes the SE, re-issuance of a replacement UICC to the cardholder maybe an option. Thus, in some embodiments it is the responsibility of thestaging account provider to identify and offer provisioning options thatare applicable for the actual circumstances of each target market (i.e.,country).

FIG. 2 is a block diagram of an example of the mobile device 102 shownin FIGS. 1A and 1B. In its hardware aspects the mobile device 102 may beentirely conventional, and indeed in most or all of its software aspectsit also may be conventional, and may provide novel functionality asdescribed herein through interaction (via interaction with merchantdevice 114 of FIG. 1B) with a personalization server. In otherembodiments, however, novel functionality as described herein may resultat least partially from software and/or firmware that program the mobiledevice 102 as well as through interaction with other devices, such as amerchant's retail terminal (such as a point of sale (POS) device or cashregister) or other merchant device (such as a NFC reader and the like).

The mobile device 102 may include a conventional housing (indicated bydashed line 202) that contains and/or supports the other components ofthe mobile device 102. The mobile device 102 further includesconventional control circuitry 204, for controlling over-all operationof the mobile device 102. Preferably the control circuitry 204 issuitably programmed to allow the mobile device 102 to engage in datacommunications and/or text messaging with other devices, and to allowfor interaction with web pages accessed via browser software, which isnot separately shown. Other components of the mobile device 102, whichare in communication with and/or controlled by the control circuitry204, include: (a) one or more memory devices 206 (e.g., program andworking memory, and which may include one or more secure portions orsecure elements, and the like); (b) a conventional SIM (subscriberidentification module) card 208; (c) a conventional keypad 210 (or touchscreen) for receiving user input; and (d) a conventional display 212(or, again, touch screen) for displaying output information to the user.

The mobile device 102 also includes conventional receive/transmitcircuitry 216 that is also in communication with and/or controlled bythe control circuitry 204. The receive/transmit circuitry 216 is coupledto an antenna 218 and provides the communication channel(s) by which themobile device 102 communicates via the mobile network (not shown). Themobile device 102 further includes a conventional microphone 220,coupled to the receive/transmit circuitry 216. Of course, the microphone220 is for receiving voice input from the user. In addition, aloudspeaker 222 is included to provide sound output to the user, and iscoupled to the receive/transmit circuitry 216.

The mobile device 102 may also include an integrated circuit (IC) orchipset 224 of the kind embedded in contactless payment cards. Forexample, the IC 224 is connected to an antenna 226 and (once the mobiledevice 102 has been personalized, as described below) operates so as tointeract with an RFID/NFC proximity reader of a POS terminal to providea payment card account number for a purchase transaction at the POSterminal. For example, the IC 224 may be designed and/or programmed tooperate in accordance with the above-mentioned PayPass™ standard.

FIG. 3 is a block diagram of the components of a staging account system300 for accommodating mobile device provisioning and paymenttransactions according to an embodiment. For ease of understanding, oneblock is shown as representing a staging account provider computer 106,a user interface (UI) provider computer 302, a prepaid issuer computer118, a primary issuer computer 112, a payment network 110, aprovisioning service computer 104 and a mobile network operator (MNO)304, but it should be understood that each block may represent multiplecomputers and/or computer systems configured to function as describedherein. The staging account provider computer 106 is configured forcommunications with a user interface (UI) provider computer 302, aprepaid financial institution (FI) computer or prepaid issuer computer118, a primary issuer computer 112, a payment network 110 (such as theBANKNET® network mentioned above) and a provisioning service computer104. The provisioning service computer 104 is configured forcommunications with a mobile network operator (MNO) 304, which isoperable for communicating with a mobile device 102 of a cardholder (aconsumer). The payment network 110 is configured for communications withan acquirer financial institution computer 116, which is configured forcommunications with a merchant device 114, and the merchant device isconfigured for communications with the mobile device 102. The paymentnetwork 110 is also configured for communications with the primaryissuer 112.

The staging account provider computer 106 includes a number ofinterfaces to facilitate the transfer of data to operate the stagingaccount. For example, some embodiments require the staging accountprovider computer 106 to include a BANKNET® interface to process allstaging account transactions that are routed from an acquirer financialinstitution to the staging account provider. This is a standard issuerprocessor function, and thus is subject to pre-defined specifications,rules and certifications (such as those defined for MasterCard ServiceProvider Third Party Processors (MSP TPP)), and accordingly the stagingaccount service does not impose any additional requirements on thisinterface. In addition, the staging account provider computer 106 mustinclude a provisioning service interface for each trusted servicemanager (TSM) and/or trusted service provider (TSP) that the stagingaccount provider utilizes to provision the staging account onto a mobiledevice (such as a cell phone), and a primary issuer interface for eachprimary issuer (financial institution) that utilizes the staging accountservice of that staging account service provider 106.

In some embodiments, the provisioning service interface between thestaging account provider computer 106 and the provisioning servicecomputer 104 is operated in accordance with the MasterCard® MobileProvisioning Framework (MMPF), which is subject to an independentdetailed specification and is outside the scope of this disclosure. Itshould be understood, however, that implementations require the stagingaccount provider and the provisioning service to support trials and/orlow volume deployments, in addition to over-the-air (OTA) provisioning,local issuance and re-issuance of the UICC (or SIM card). In particular,when a consumer purchases a handset and/or mobile device package, he orshe may have the staging account provisioned directly by the retailer.In some implementations, such provisioning may be conducted using an OTAprocess which may be cost effective in addition to providing an improvedcustomer experience. In some embodiments, the retailer instigates andoversees the provisioning of the UICC (or the embedded secure element(SE)), including downloading the user interface (UI) and digital walletinto the handset. In some implementations, the retailer receivessufficient training, and therefore has experience with the process (fromundertaking it for previous customers) so that any problems that mayoccur can be easily rectified. In some other embodiments, instead ofusing an OTA process or local issuance to provision the mobile stagingaccount, a new UICC (or SIM card) is sent to the consumer to replacetheir existing UICC (or SIM card). Such an UICC is fully provisioned inthe mobile network operator's (MNO's) personalization bureau, and theMNO provides instructions for the cardholder regarding how to download aUI and a digital wallet application onto their handset (a relativelystraightforward process).

The staging account provider also includes a plurality of primary issuerinterfaces that correspond to each primary issuer (financialinstitution) that utilizes the staging account services. The primaryaccount interface supports primary issuer requests to issue a newstaging account, to access account information (and for changing theaccount configuration, where appropriate), to access account activity(for customer statements, regulatory reporting and benefit accruals),and to provide account top-ups. Thus, in some embodiments a secure (andauthenticated) channel is set up between the staging account providerand each primary issuer that utilizes the services of the stagingaccount provider. The use of a secure channel is the responsibility ofeach primary issuer, and thus a primary issuer implements any controlsnecessary to prevent unauthorized use of the services within their ownorganization. In some embodiments, the staging account provider alsoprovides a “white label” web-portal for use by cardholders of aparticular primary issuer, and such a web-portal may also be providedthrough a secure channel to the primary issuer. The primary issuer isthus responsible for authenticating the cardholders before allowing themaccess to the web-portal.

With regard to staging account top-ups, the interface between thestaging account provider and the primary issuer may be implemented inany of a number of ways. For example, for trials and smallerdeployments, a normal payment transaction can be submitted through apayment network (such as BankNet®) to the primary issuer to authorizeand settle funds. In order to ensure a good cardholder experience, aprimary issuer configures its authorization system to recognize thestaging account provider as a trusted merchant, and to not apply“quasi-cash” or “cash advance” fees to the top-up transactions. Withregard to larger deployments, where transactional costs must beminimized, the staging account provider and primary issuer in someembodiments implement a proprietary connection to allow top-uptransactions to be processed more cost effectively. Such a proprietaryconnection beneficially results in no interchange passing between thestaging account provider and the primary issuer, and the costs andrevenue generated can be subject to conditions defined in the businessservices agreement. In addition, in such cases MasterCard BankNet®charges will not be due because the transactions are not routed throughthe BankNet® payment network. However, it should be noted thatimplementation of a proprietary connection will involve additionalset-up and configuration costs for both the primary issuer and thestaging account Provider.

The staging account provider also enters into commercial agreements withpartners in order to deliver the staging account service. In particular,the staging account provider 102 and the User Interface (UI) provider302 must have an agreement that defines the terms and the conditionsunder which a user interface (and the digital wallet) may be issued andused by the primary issuer's cardholders. The staging account provider106 and the primary issuer 112 must also have a commercial agreementregarding items such as the fees to be charged by the staging accountprovider to the primary issuer to set up and maintain the stagingaccounts for their customers. In addition, the staging account providerhas commercial agreements with one or more pre-paid financialinstitutions (or bank identification number (BIN) sponsors) who issuethe pre-paid accounts that are companion accounts to those issued to theconsumer but which are utilized as the consumer's mobile device account.Moreover, the staging account provider has commercial agreements withone or more provisioning service vendors so that the staging accountscan be deployed to mobile handsets of consumers. These agreements may becomplex, as multiple parties and/or organizations may be involved (suchas handset providers, UICC providers and eligibility check serviceproviders). Also, in some embodiments, the staging account providerneeds to have a commercial agreement with one or more mobile networkoperators (MNOs) so that access can be obtained to a secure element (SE)of the consumer's mobile devices.

It should be recognized that utilizing a prepaid staging account and astaging account provider as described herein may introduce additionalexpense per transaction for a primary issuer. In some cases theadditional expense may be covered by the interchange fees earned fromtransactions undertaken with a mobile device (yielding a smallprofitable margin), however in some cases the interchange fees earnedmay be insufficient to cover all costs, and the primary issuer may beexpected to cover such costs. Therefore, such a configuration or systemmay not be commercially viable (or sustainable) for larger mobile devicepayments deployments. But due to the lower set-up costs, such aconfiguration or system is viable and/or cost effective for smallerprograms, for example, for issuers who want to carry out a mobilepayments pilot before deploying large scale mobile solutions (“trybefore you buy”). In addition, small to medium-size banks looking for acost-effective mobile payments deployment with minimal effort or upfrontinvestment costs may find it attractive to utilize the systems and/orprocesses described herein. In addition, a primary issuer may market themobile account as a ‘Cardholder Benefit’ which the primary issuer usesto enhance the loyalty of existing cardholders, or as a marketing toolto win new cardholders. In some cases, the primary issuer may be able toapply an additional charge to the cardholder for the mobile accountservice to cover all costs, for example, by charging an annual fee, or amonthly fee, or a per-transaction fee, or some combination thereof.

FIG. 4 is a block diagram illustrating an embodiment of the stagingaccount provider computer system 400.

The staging account provider computer system 400 may be conventional inits hardware aspects but may be controlled by software to cause it tooperate in accordance with the processes described herein. For example,the staging account provider computer system 400 may be constituted byconventional server computer hardware.

The staging account provider computer system 400 may include a computerprocessor 402 operatively coupled to a communication device 404, aninput device 406, an output device 408, and a storage device 410.

The computer processor 402 may include one or more conventionalprocessors, such as those manufactured by Intel Corporation and/or theAMD Company. Processor 400 operates to execute processor-executablesteps, contained in program instructions described herein, so as tocontrol the staging account provider computer system 400 to providedesired functionality.

Communication device 404 may be used to facilitate communication with,for example, other devices (such as computers or computer systems 302,104, 110, 112 and 118 shown in FIG. 3). For example, communicationdevice 404 may comprise numerous communication ports (not separatelyshown), to allow the staging account provider computer system 400 toprovide data and/or services simultaneously to numerous clientcomputers.

Input device 406 may comprise one or more of any type of peripheraldevice typically used to input data into a computer. For example, theinput device 406 may include a touchscreen, a keyboard and/or a mouse.Similarly, output device 408 may include one or more peripheral devicestypically used to obtain data from a computer. For example, the outputdevice 408 may include, for example, a display screen and/or a printer.

Storage device 410 may comprise any appropriate information storagedevice, including volatile and/or non-volatile types of memory. Forexample, the storage device 410 may include combinations of magneticstorage devices (e.g., magnetic tape and hard disk drives), opticalstorage devices such as CDs and/or DVDs, and/or semiconductor memorydevices such as Random Access Memory (RAM) devices and Read Only Memory(ROM) devices, as well as flash memory. Any one or more of suchinformation storage devices may be considered to be a non-transitorycomputer-readable storage medium or a computer readable medium.

Storage device 410 stores one or more programs or program modules forcontrolling processor 402. The programs comprise program instructions(which may be referred to as processor-executable instructions orcomputer readable program code means) that contain processor-executableprocess steps of staging account provider computer system 400,including, in some cases, process steps that constitute processesprovided in accordance with aspects and/or principles of one or moreembodiments described herein. The storage device 410 may also store oneor more databases that include data that may be required and/or utilizedfor one or more processes describe herein.

The storage device 410 stores supporting services programs 412 for thepurpose of providing primary issuer computers with access to servicesthat assist in the deployment and management of mobile accounts. In someimplementations, the services offered include enrollment services,set-up services, customer services and reporting services. In addition,in some embodiments the staging account provider may provide to theprimary issuer value added services that may be branded by the primaryissuer for direct use by their customers or cardholders. Such valueadded services may include a mobile application for the cardholder todirectly manage their staging account. For example, a Web-portal and/ora call center (or IVR) may be available for the cardholder to directlymanage their staging account. In addition, a remote message system (SMSor email) may be provided to inform cardholders of transactions, balanceand top-up events on the staging account.

In some embodiments, the supporting services programs 412 include anenrollment application programming interface (API) for directintegration with the primary issuer computer system(s). But enrollmentof cardholders may instead or additionally be implemented as aweb-portal for use directly by primary issuer staff for use, forexample, in smaller pilots and trials where the primary issuer wishes toavoid the cost of a full system integration. In any case, the enrollmentservice is implemented via an encrypted and authenticated link such thatonly authorized primary issuer systems (or staff) can access it.

The purpose of providing enrollment functionality is to capture allinformation required in order to set up a new staging account for acardholder of a primary issuer, wherein the primary issuer has alreadyrequested such services from a staging account provider. The informationthat must be captured includes cardholder details (such as the name,address, date of birth, and contact information of the cardholder),mobile device details (such as the phone number, mobile network operator(MNO), the brand, model and/or type of mobile handset), primary accountdetails (such as the card account number, the expiration date of thecard account, the CVC2 number, and the like), and a passcode which is asecret passcode that is shared with the cardholder and used to validatethat the phone is in possession of the cardholder at the time ofprovisioning. In addition, know your customer (KYC) data (which may bedependent on country regulations) may be captured (but in some cases maynot be required), and data concerning certain options (where choices areavailable, the data indicates which options have been selected).

Under a business agreement between the staging account provider and theprimary issuer, any KYC data that must be supplied will be set forth.However, in some cases regulatory requirements may not require a primaryissue to actually pass KYC data to a staging account provider, but theremay be a requirement to formally acknowledge that KYC data has beencollected. Thus, in some embodiments, upon submission of a request toissue a new account, the data provided is checked (where possible) toensure that it is complete and correctly formatted, and anacknowledgement message (or error message) is provided. Since a mobiledevice provisioning process takes some time, in some embodiments theprimary issuer tracks the status of the request including the dataprovided through a customer services API and/or a Web-portal. As part ofthe provisioning service, the staging account provider (or TSM)transmits a number of messages to the consumer via SMS or other suitablemessaging service, and the content and frequency of such messages isagreed upon between both parties (the staging account provider and theprimary issuer) and included within the business services agreement.

The staging account provider is responsible for securing the bankidentification number (BIN) range necessary (for example, via a BINsponsor) for issuance of the staging accounts. Within this BIN range,the staging account provider allocates and generates staging account PANnumbers for the cardholders' mobile device accounts, and populates amapping database to ensure that there is a one-to-one (1 to 1)correspondence for all staging accounts issued to the appropriateprimary issuer and the cardholders corresponding debit card account orcredit card account, for example. The mapping to the appropriate primaryissuer is critical because, to achieve economies of scale, the stagingaccount program can be shared by many primary issuers. It is importantthat the contractual terms, program options, and appropriate brandingare correctly applied to all aspects of the staging account servicesprovided for each staging account issued based on the program agreedupon between the staging account provider and each individual primaryissuer. The fact that for many primary issuers the staging or mobileaccount service will be delivered using a shared program must beeffectively invisible to their cardholders.

The staging account provider is responsible for selecting the datapreparation service (DPS) and/or the trusted service manager (TSM)vendors (the provisioning service 104) that will carry out mobileprovisioning on their behalf. Such entities may be selected based onexisting relationships, and the type(s) of mobile devices that need tobe provisioned. For example, MasterCard® International Inc. requirementsinclude a provision that requires all such selected partners to beaccredited by MasterCard®. Accordingly, the staging account provider isresponsible for defining the technical requirements, businessagreements, and interfaces with all the partners selected, and managingthe end-to-end provisioning process on behalf of the primary issuer. Aspart of the provisioning process, a User Interface (UI) must bedownloaded to each mobile device. The UI must be compatible with themobile device, provide the functionality required, and be branded asrequired by the primary issuer. For example, the staging accountprovider may offer a primary issuer a UI built using the MasterCard® UIsoftware development kit (SDK). The staging account provider alsoconfigures and customizes the UI in accordance with the requirements ofthe primary issuer in accordance with the business services agreement,and may be required to complete user acceptance testing (UAT) prior torollout of the mobile accounts service with the primary issuer and allpartners involved to ensure that that the provisioning processes worksas required by the primary issuer.

In some embodiments, as part of the supporting services provided by thestaging account provider, the primary issuer can access operational andstatus information for a staging account set up on their behalf and cansearch for a particular mobile account (staging account) based on one ormore of the cardholder's name, the cardholders mobile telephone number,and/or the primary account number (the funding account). In someimplementations, the staging account provider need not validate that theprimary issuer is accessing the correct account, but for the purposes ofproviding audit functionality, transaction logging may be implemented.In addition, in some embodiments the primary issuer can utilize the API(or the Web portal) to view (and/or to update where applicable) thestatus of the mobile account or staging account (for example, statusindications may include “Open”, “Suspended”, “Reported Lost/Stolen”, or“Closed”), status of the provisioning process, any information regardingthe SIM/UI or handset currently in use, the account balance (plusability to undertake a top-up), the transaction history (includingfailed authorizations), and current account funding options (if any).

The transaction history for a staging account is made available by thestaging account provider to the primary issuer as part of the supportingservices so that the primary issuer can generate a cardholder statementfor transmitting to the cardholder. But in some embodiments, otherreports are provided to assist the primary issuer in managing thestaging accounts being used by their cardholders. Such reports may beavailable upon request for a given period of time, and may include oneor more of a report of high usage accounts, a report of dormantaccounts, a report of accounts where an authorization has been declined,a report of accounts where a top-up has not been completed successfully,a report on all potentially fraudulent activity detected, a statorreport required by law (see below), and/or a benefit accruals report(see below).

In some jurisdictions, a primary issuer is responsible for compliancewith reporting requirements issued by, for example, a financial sectorregulator in one or more of the territories in which the primary issueroperates. In order to satisfy such requirements, the staging accountprovider provides any such statutory reporting that is necessary. Aspart of the staging account construct, cardholder benefits available onthe primary account card (the funding account) may be transferred at thediscretion of the primary issuer to one or more transactions undertakenby the cardholder using their mobile account (their staging account). Tofacilitate such functionality, benefit accruals reporting may be agreedupon between the staging account provider and the primary issuer, forexample, as part of the business services agreement. Thus, in someimplementations the staging account provider is required to separatelyreport transactions (or transactions values and/or volumes) on which thecardholder has earned a benefit (e.g. loyalty points), for example, as abenefits report. The staging account provider thus must have theflexibility to generate such benefits reports; however, the content andfrequency of such benefit reports is subject to negotiation between thestaging account provider and the primary issuer.

In addition, in some embodiments as part of the supporting servicesprovided by the staging account provider, value added services can beprovided that provide the cardholder with functionality directly fromthe staging account provider (instead of from the primary issuer). Suchvalue added or “white label” services minimizes the effort and expenseof the primary issuer to develop the functionality for such services totheir cardholders themselves. However a key requirement for such whitelabel services is that they are branded by the primary issuer so thatthe cardholder is unaware of the fact that the service is actually beingprovided by a third party (the staging account provider) instead ofbeing provided by the primary issuer.

Referring again to FIG. 4, the storage device 410 also stores top-upservices programs 414 that provide top-up options to cardholdersaccording to rules provided by the primary issuer. In particular, theprimary issuer determines what top-up options are available for theircardholders from options provided by the staging account provider 400.The options selected by the primary issuer can broadly depend on how themobile payments solution is marketed to cardholders, and if the primaryissuer permits their cardholders to manage their mobile account balance.For example, the staging account provider may allow automatic top-up sothat, when the staging account balance (the mobile account balance)falls below a pre-determined value, the staging account is automaticallytopped-up to a pre-determined balance. The pre-determined levels can beset by the primary issuer based on, for example, the financial standingof the cardholder and/or that cardholder's usage profile.

The staging account provider may also offer semi-automatic top-up, whichis similar to automatic top-up but requires the consent of thecardholder (typically obtained via a user interface (UI) on the mobiledevice) before the actual top-up is undertaken.

The staging account provider may also offer manual top-up. For example,the cardholder may be provided with a low balance warning when theirbalance falls below a pre-determined value, and it is then theresponsibility of the cardholder to request (typically via the UI on themobile device) a top-up for that staging account, and to specify theamount of money that should be topped-up.

In situations in which the cardholder had a transaction declined becauseits value is greater than the current available balance, and/orpotentially the balance that would normally be achieved following anautomatic or semi-automatic top-up, the staging account provider mayoffer (subject to primary issuer approval) the cardholder the ability totop-up the staging account by an amount sufficient to allow thetransaction to be undertaken on a second attempt. The staging accountprovider may also provide functionality for a cardholder to set daily orweekly limits to the amount of funds that can be automatically topped-up(without the cardholder directly communicating with the primary issuer'scustomer services) as an added security feature. In addition, thestaging account provider may provide functionality to limit the value ofthe maximum transaction (or top-up) that can be undertaken.

In some embodiments, when the prepaid staging account (the mobileaccount) is reloaded or topped-up with value (for example, after anautomatic top-up has been performed to load value), the primary issuermay refer to such a transaction on the cardholder's primary accountstatement as “Transfer to Mobile Account” or “Transfer to Mobile Wallet”or the like. In some embodiments, when a transaction using the prepaidstaging account is declined because of insufficient funds in the prepaidstaging account, a display on the cardholder's mobile device may beprovided which suggests one or more options to the cardholder (based onrules established by the funding account issuer). For example, theoptions for the cardholder may include: (1) asking the cardholder if heor she wishes to transfer additional funds into the mobile account, (2)prompting the cardholder to attempt the transaction again (in themeantime, the system may automatically perform a top-up to ensure thatsufficient funds will be available to cover the transaction), or (3)prompting the cardholder to use their primary funding account paymentcard instead of using the mobile device. Those skilled in the artappreciate that other options may be available and may be presented tothe cardholder on the mobile device display as well.

The storage device 410 also stores transaction processing servicesprograms 416 because the staging account is a prepaid account that isconfigured and operated in accordance with business requirements. Insome embodiments, transaction processing is undertaken in accordancewith MasterCard International Incorporated prepaid rules andrequirements.

Referring again to FIG. 4, the storage device 410 stores stagingaccount/program management programs 418 that enable the staging accountprovider to manage the staging accounts for cardholders. However, thestaging account provider is not responsible for marketing the program,or for managing cardholder relationships. These responsibilities insteadare undertaken by the primary issuer, and the responsibility for sometypes of fraud is also passed to the primary issuer (wherein the fraudresponsibilities are set forth in a business services agreement betweenthe primary issuer and the staging account provider). However, in someembodiments legal liability still resides with the staging accountprovider and thus the staging account provider must manage the balanceof all accounts and monitor for any fraud that may occur.

Fraud represents a cost to all payment account programs, and is normallybuilt into account charges. Thus, in order to minimize the risk offraud, restrictions are imposed on usage of a staging account so as tolimit the opportunity for fraud to occur, and thus to result in reducingthe cost of operating a staging account. In particular, in someimplementations the staging account provider authorizes only “cardpresent” or “chip” transactions, wherein the cardholder must physicallytap or wave his or her mobile device near a reader device (such as anNFC reader). Card not present transactions (such as mail order, internetand/or recurring payment transactions) are not permitted through astaging account. Instead, if the cardholder wishes to engage in a cardnot present transaction, then he or she must use their primary account(if permitted) for such transactions (That is, the cardholder mustutilize the PAN of his or her primary account instead of the mobileaccount PAN). Another restriction that may be applied is that thestaging account shall only be funded from a previously nominated accountheld with the primary issuer such that cash loading and/or funding fromother accounts is not be permitted.

Since the staging account provides an existing credit or debitcardholder with a companion account on a mobile device, the stagingaccount provider does not have the ability to select (or validate) thecardholders who receive mobile accounts (instead, this is determined bythe primary issuer). For this reason, and due to account limitationsimposed under the business services agreement, the responsibility forsome types of fraud are with the primary issuer. For example, theprimary issuer is responsible for any fraud that occurs due to a lost orstolen payment card or mobile device, a fraudulent credit or debitaccount application, or an account takeover. In addition, the primaryissuer is responsible for a cardholder “bust-out” fraud (the term“bust-out” refers to a hybrid credit and fraud problem that is alsoknown as “sleeper” fraud, wherein a consumer applies for and usescredit, often under his or her own identity, with the intent of maxingout all available credit and then eventually disappearing without payinghis or her bill).

Lost and/or stolen mobile device scenarios are complex when more thanone payment device is issued on an account. If one device is lost orstolen, consideration must be given to how that will impact the use ofother devices on the same account. For example, when a mobile devicethat includes a payment application funded by a staging account is lostor stolen, but the cardholder still retains his or her payment card,then the mobile device account (the staging account) is suspendedpending re-issuance. Likewise, in the case where both the cardholder'spayment card and mobile device including a payment application funded bya staging account is lost or stolen, then the mobile device account (thestaging account) is suspended pending re-issuance (the primary issuermay also suspend the primary account). In the case where thecardholder's payment card is lost or stolen, but the cardholder stillretains his or her mobile device, then the mobile device may not bepermitted to be topped-up. In such a case, the primary issuer may linkthe staging account to a new funding source.

Furthermore, unlike a “payment card” there are a number of valid reasonswhy a cardholder may give his or her mobile device to a family member,friend or third party for use (for example, to make a phone call or, inthe case of a smart phone, to check a fact by using a web browser).Thus, the staging account provider must be capable of supporting atemporary account suspension request by a cardholder (via the primaryissuer) wherein the staging account provider functions to prevent theauthorization of any transactions that may be attempted while thetemporary account suspension is in effect. When the cardholder removesthe temporary account suspension, then the staging account can be usedin the normal fashion.

The storage device 410 may also store one or more databases for use bythe staging account provider processor to manage accounts and/or provideservices. For example, a primary issuer agreements database 420 mayinclude terms and conditions that govern the engagement of the stagingaccount provider by each primary issuer for issuing mobile accounts(staging accounts) on behalf of the primary issuers to existingcardholders. In some embodiments, in exchange for providing the servicesthe staging account provider receives prepaid interchange revenue fromthe acquirer for each staging account transaction process. For operatingthe service, the staging account provider charges a fee to each primaryissuer, which may depend on specific details of each agreement reached(which may depend on the amount of cardholders to be serviced), andwhich may or may not exceed interchange revenue. Therefore, in somecases part of the interchange revenue may still be passed onto theprimary issuer after staging account provider fees are deducted, but inother cases the primary issuer may need to pay fees in addition to therevenue collected by the staging account provider from the prepaidinterchange revenue. Accordingly, it should be understood that in somescenarios the interchange revenue to the primary issuer for providingstaging accounts issued to their cardholders will be significantlyreduced, or effectively zero. Thus, from the point of view of primaryissuers, the justification for utilizing a staging account may includeconsiderations such as: speed to market; reduction in set-up fees andlittle or no changes required to the primary issuers host systems;and/or cost effectiveness with regard to undertaking smaller mobileaccount deployments for cardholders.

It should be understood that the operational cost of the staging accountprovider service is influenced by the project scope and mobile account(staging account) issuance volumes. In addition, the set-up cost of themobile account service can be influenced by whether or not the stagingaccount provider already has a suitable “Staging Account Program”available, and/or if core relationships are already in place throughtheir provisioning service partners.

As mentioned earlier, the staging account provider and each primaryissuer must have a commercial agreement in place that defines the termsand conditions of the services provided to the primary issuer by thestaging account provider. For example, the commercial agreement shouldinclude fees to be paid, the method of deployment of the stagingaccounts (plus how to update and/or remove mobile accounts) includingservice level agreements of the mobile account, user interface (UI) andmobile wallet to cardholders. In addition, the mobile network operators(MNOs), UICCs and handsets to which the mobile accounts are to bedeployed must be specified. In addition, technical support regarding theidentification and resolution of any issues that occur when deploying anaccount to a mobile device, information available to the primary issuerfor customer support purposes regarding the progress of deployment of anaccount, and the current status of a mobile handset and/or UICC (e.g. ifthe UICC/Handset is lost, stolen, terminated or replaced), and/orwhether post issuance management services are available, should bespecified. The primary issuer also needs to know the informationrequired for the cardholder enrollment process, and must specify theaccount funding options (including the frequency and timing, the top-upamount, and the top-up mechanism such as automatic or manual). Theagreement must include the reporting functionality (or services) thatare required by the primary issuer from the staging account provider,and the web-portals (or API's) that are required by the primary issuer.In addition, the primary issuer specifies the user interface (UI) andwallet design and the branding that should appear on the consumer'smobile device with regard to the staging account. Further, the processfor advising the cardholder of their mobile personal identificationnumber (PIN) must be specified, and there must be a sign-off onexception transaction processing to include lost card and/or lost mobiledevice scenarios, chargebacks and/or returns, transaction declines dueto insufficient funds, and fraud liabilities.

The storage device 410 depicted in FIG. 4 may also include a userinterface (UI) provider agreements database 422 that includes terms andconditions that define the user interface and digital wallet that isprovided to cardholders of each particular primary issuer. For example,fees and commercial terms must be specified, and a license agreemententered into that includes any restrictions imposed, for example, onparticular countries and to what handsets the UI and the electronic ordigital wallet may be deployed. The agreement must also containinformation regarding the method of deployment (and potential updates)of the UI and the digital wallet to mobile devices of cardholders, andmust specify the entity that will host a web-portal to support thedownload of the UI and digital wallet to the cardholders handset.Technical support issues, such as the identification and resolution ofany issues that occur with the UI when deployed to consumer mobiledevices, and development issues, such as designing a new UI to supportnew handsets as the need arises for deployment to the new handsets, mustalso be specified. In addition, the commercial agreement should alsocover how ongoing enhancements of the UI and the digital wallet arehandled to address changes to mobile/MMPP standards and specificationsas they occur.

The storage device 410 may include a Pre-Paid financial institutionagreements database 424 that includes terms and conditions that governthe relationship between the staging account provider and each pre-paidfinancial institution (or BIN sponsor) that provides staging accountsfor use with mobile devices. The BIN sponsor is aware of the stagingaccount construct, and the fact that such staging accounts are beingdeployed to mobile handsets and not to cards. The roles andresponsibilities that key stakeholders are undertaking should also beidentified. For example, the staging account provider undertakes issuerprocessing “plus”, which means that any additional services necessary todeliver the staging account (which traditionally may have beenundertaken by a program manager for a GPR prepaid account) are nowhandled by the staging account manager. In addition, the primary issuerundertakes marketing of staging accounts, cardholder selection andknow-your-customer (KYC) rules, which roles have typically beenundertaken by a program manager in a GPR prepaid account.

In addition, the commercial agreement between the BIN sponsor and thestaging account provider also specifies the bin range to be utilized,fees and commercial terms, KYC liability, and the duration of theagreement. KYC requirements differ by jurisdiction and thus specificrequirements for any target territories should be well understood andspecified by the BIN sponsor and/or staging account provider beforedeploying any mobile accounts for the customers of the primary issuer.

Also shown in FIG. 4 is a provisioning service agreements database 426that, in some embodiments, includes terms and conditions that govern therelationship between the staging account provider and each provisioningservice vendor. As mentioned above, the relationship between the stagingaccount provider and the provisioning service vendors may be complex dueto the number of organizations that may be involved in the deployment ofaccounts. But the staging account provider has a primary relationshipwith a service provider trusted service manager (SP TSM), who may thenmanage relationships with other parties as required to achievedeployment. The parties involved in deployment of the mobile account mayinclude, for example, the UICC provider (if the secure element (SE) islocated in the UICC), the handset provider (if accounts are beingdeployed to an embedded SE), the micro SD provider (if the SE is hostedon a micro SD card), the MMPP application provider, the service providertrusted service manager (SP TSM), the secure element trusted servicemanager (SE TSM), the MNO, the eligibility check service provider (forexample, MasterCard International, Incorporated), and/or the retailer(if in store deployment is required).

In addition, the service agreements database 426 may include technicalimplementation and testing requirements to ensure that mobile accountscan be deployed. Such implementation and testing requirements arerequired for each staging account program offered to Primary Issuers.

The provisioning service vendor can either be a TSM or a TSP, and thusan agreement with the staging account provider includes fees andcommercial terms, account profiles to be deployed, a determination ofthe entity that is responsible for t the data preparation function, themethod of deployment (plus update to mobile account and/or removal ofthe mobile account) including service level agreements of the account,and how and when the UI and digital wallet is provided to cardholders.In addition, items that may be included are technical support(responsibility for identification and resolution of any issues thatoccur when deploying an account to a mobile device), further developmentto support deployment to new handsets and/or new UICC's as required, howand when information is returned to the staging account providerregarding the progress of deployment of an account, and the currentstatus of a mobile handset and/or the UICC (e.g. if the UICC and/or themobile handset is lost, stolen, terminated or replaced). The agreementshould also specify whether or not post issuance management services areavailable and the overall service the provisioning service provider isexpected to provide.

In some embodiments, the storage device 410 may include a MNO agreementsdatabase 428 that includes terms and conditions between the stagingaccount provider and the MNO that permits the staging account providerto access the secure element (SE) of the mobile device. Such anagreement between the MNO and the staging account provider includes feesand commercial terms, a license agreement (which may includerestrictions imposed regarding operation in some countries and to whathandsets an account may be deployed), the information returned to thestaging account provider regarding the progress of deployment of anaccount, and the current status of a mobile handset and/or the UICC(e.g. if the UICC and/or mobile device or handset is lost, stolen,terminated or replaced). Such an agreement may also include the methodof deployment (plus how updates and/or removal are handled) includingservice level agreements of the account, UI and digital wallet tocardholders, spell out how technical support issues are handled (forexample, the identification and resolution of any issues that occur whendeploying an account to a mobile device), and which entity holds or hasaccess to the keys required to create an MMPP instance with the SE andpersonalize it with the staging account.

As mentioned earlier, the primary issuer owns and manages therelationship with the cardholder and provides all funds that are loadedonto the cardholder's mobile account (the staging account). The primaryissuer also determines if cardholder benefits (for example, loyaltypoints and the like) earned through use of the card account will be madeavailable on the mobile account, which may require the primary issuer toupdate their cardholder's benefits based on a report provided by thestaging account provider for benefits accrued through the stagingaccount. In some embodiments, the primary issuer provides the stagingaccount provider with visibility into cardholder benefits for each cardin their staging account portfolio so that the staging account providercan generate any necessary reports for the primary issuer to reconcilebenefits.

As also mentioned herein, the primary issuer is typically responsiblefor the completion of “Know Your Customer” (KYC) requirements to achievecompliance with regulations and product rules present in the market.Thus, the primary issuer completes this process in accordance with thebusiness services agreement with the staging account provider andprovides via an enrollment API, for example, all of the requiredcustomer information. Thus, on receipt of a new request for enrollment,the staging account provider validates that all required information ispresent, and is in the correct format. The enrollment request is then beacknowledged (or an error given if validation fails) and the process ofissuing a new mobile account begins. The primary issuer can then monitorprogress via a customer services API provided by the staging accountprovider.

In some embodiments, the cardholder is provided with direct access totheir transaction history via a UI on their mobile device. However, somemarkets have regulatory requirements that mandate that the cardholder beprovided with a printed statement of transactions undertaken (which maybe implemented via a webpage that the cardholder can print). The primaryissuer may use the staging account providers API's to retrievetransaction history information and include that directly in thecardholder's monthly statement. But if a given mobile device is utilizedfor multiple convenience purchases, then the number of transactionslisted may be very large with some cardholders may not appreciate. Inaddition, the cost of such integration by the primary issuer may farexceed the perceived value, especially if it is to support only a smallnumber of accounts. Thus, in some cases the primary issuer may only listthe “top-ups” requested of the staging account provider, which may bedescribed on the cardholder's statement using terms such as “Transfer tomobile account”. Such operation minimizes the changes required to thestatement system, but may not meet regulatory requirements in somejurisdictions. Thus, the primary issuer may utilize a white labelweb-portal provided by the staging account provider (if this value addedservice is available) to provide the cardholder with a separatestatement of their transactions performed using their mobile device.Such information made available on the website may include the name ofthe merchant, the purchase amount, and the date and/or time of thetransaction. In cases wherein the primary issuer utilizes the stagingaccount provider's web-portal to provide data to cardholders, theprimary issuer and the staging account provider must agree to thebranding of the web-portal, and how the cardholder is authenticated whenaccessing the web-portal. But authentication and hosting of a connectionto link the cardholder to the web portal from the primary issuers ownwebsite is the responsibility of the primary issuer.

In the event of a problem or question, a cardholder will by defaultcontact the customer service department of the primary issuer. Thus, theprimary issuer provides an appropriate level of training for theircustomer service staff so that such calls can be handled. A specialistteam may be set up within the primary issuer's customer serviceoperation to support cardholders that have mobile device accounts.However, due to the complexities of mobile issuance, it is likely thatadditional technical expertise will also be needed, or processesavailable to allow escalation of unresolved issues to the stagingaccount provider and/or to other vendors involved in the delivery of theaccounts to the cardholder's mobile device. The Primary Issuer'scustomer support systems may be connected with the staging accountprovider's API to access account and status information, or the customersupport staff is provided with access to the customers staging accountinformation via a web-portal. In addition, the pre-sales and/or customerenrollment teams will also need to be provided with an appropriate levelof training.

When funding a staging account, the primary issuer may reduce the“available to spend” balance on the cardholder's primary account.Alternatively, to simplify cardholder messaging, the primary issuer mayextend the cardholder's credit limit or overdraft facility (wherepermitted by law) to hide the initial transfer of funds. The primaryissuer also determines which top-up options are available to theircardholders (e.g., automatic, semi-automatic, and/or manual top-ups) andcommunicate these choices to their cardholders. If choices areavailable, the selected choice must be provided to the staging accountprovider during enrollment, and processes put in place via the primaryissuer's customer services team (or website) to enable the cardholder tochange the selection if necessary.

FIG. 5 illustrates a process 500 for mobile staging account provisioningaccording to an embodiment. A staging account provider computer receives502 a request to provision a mobile payment account for a cardholder'smobile device. The request may include a funding account primary accountnumber (PAN) that corresponds to a financial account (i.e., a consumer'scredit card account or a debit card account) held by a primary issuer, amobile device identifier (which may include the mobile telephone numberand/or other information, such as a device type identifier), and/oraccount description data (for example, payment card account brandingdata). The staging account provider computer then generates 504 a mobileaccount PAN and associates the mobile account PAN with the fundingaccount PAN. Next, the staging account provider computer transmits 506 apersonalization request to a trusted service manager (TSM) computer topersonalize a payment application for the cardholder's mobile device. Insome embodiments, the personalization request includes the mobileaccount PAN, the mobile telephone number and the card description data.The staging account provider computer then receives 508 a statusconfirmation message from the TSM computer. The status confirmationmessage may include information indicating that the payment applicationhas been personalized and loaded onto the cardholder's mobile device.Lastly, the staging account provider transmits a mobile accountinitialization message that includes the mobile PAN to the primaryissuer. In this manner, a cardholder's mobile device is provisioned andthe primary issuer informed that the payment application has been madeavailable to the cardholder for use in making purchase transactions withhis or her mobile device according to the cardholder agreement.

FIG. 6 illustrates a process 600 for providing a consumer with a prepaidmobile staging account according to another embodiment. A stagingaccount provider computer receives 602 identification data, which mayinclude a primary account number (PAN), from a prepaid staging accountapplication program that was loaded on a mobile device. As explainedabove, in some embodiments, a mobile device provider, which may beassociated with a mobile network operator (or MNO, which may operate themobile platform 104 of FIG. 1) may partner with a staging accountprovider or with one or more issuer financial institutions (FIs) tooffer mobile devices for sale to consumers that are pre-loaded with aprepaid mobile staging account application program. Such devices may bemarketed by issuer FI's and/or mobile network operators (MNOs) toconsumers. A consumer who purchases such a mobile device (such as amobile telephone) may initialize or run the pre-loaded prepaid stagingaccount application program to setup his or her mobile prepaid stagingaccount. For example, a mobile staging account application program maybe provided as an icon on a touch screen of the mobile device, and theconsumer may touch the icon to launch or start a mobile stating stagingaccount enrollment or registration process. For example, the preloadedprogram may open or execute to provide one or more user interfacescreens to the consumer, which interface screens include one or moreblank data fields for the consumer to enter identification information.The identification information may be transmitted to the mobile stagingaccount provider computer, which associates 604 it with a prepaid mobilestaging account. The identification information may be used to identifya consumer's financial account, such as a credit card account, a debitcard account, or a bank account issued by the consumer's issuer FI.Next, the staging account provider computer transmits 606 a confirmationmessage to the consumer's mobile device indicating successful setup, andthe process ends. In some embodiments, the confirmation message includesthe amount of money funding the consumer's prepaid mobile stagingaccount, which may be displayed to the consumer on the display screen ofhis or her mobile device. After the confirmation message is transmitted,the consumer's prepaid mobile staging account is ready for use toconduct purchase transactions as if it were the funding account.

Embodiments provide a number of advantages. For example, embodiments ofthe present invention allow issuers to quickly and efficiently launchNFC device payment programs. Pursuant to some embodiments, the prepaidstaging account is a general purpose reloadable prepaid account that isconfigured to look like another issuer's product (with that issuer'scard image, messaging and branding) and that is reloaded or “topped up”from a pre-determined credit or debit account operated by the primaryissuer (the issuer that issued the original payment account that thestaging account appears as). The primary issuer benefits in that they donot need to support NFC programs (such as PayPass™), chip transactionsor Mobile PayPass™. The staging account issuer (the issuer that providesthe prepaid staging account) uses economies of scale to cover thedevelopment effort required to offer the service, and may providestaging account services to a number of different primary issuers.

The above description and/or the accompanying drawings are not meant toimply a fixed order or sequence of steps for any process referred toherein; rather any process may be performed in any order that ispracticable, including but not limited to simultaneous performance ofsteps indicated as sequential.

Although the present invention has been described in connection withspecific exemplary embodiments, it should be understood that variouschanges, substitutions, and alterations apparent to those skilled in theart can be made to the disclosed embodiments without departing from thespirit and scope of the invention as set forth in the appended claims.

What is claimed is:
 1. A method for provisioning a prepaid mobilepayment staging account to a consumer's mobile device comprising:receiving, by a staging account provider computer from a prepaid stagingaccount application program of a consumer's mobile device, a request toprovision a prepaid mobile payment staging account, the requestincluding identification information comprising at least a mobile deviceidentifier; associating, by the staging account provider computer, theidentification information with a prepaid mobile staging account;identifying, by the staging account provider computer, a financialaccount of the consumer held by an issuer financial institution (FI)based on the identification information; generating, by the stagingaccount provider computer, a consumer prepaid mobile staging accountloaded with funds from the financial account of the consumer; andtransmitting, by the staging account provider computer, a confirmationmessage to the consumer's mobile device indicating successful setup. 2.The method of claim 1, further comprising, prior to generating theconsumer prepaid mobile staging account, determining, by the stagingaccount provider computer based on the identification information, thata user interface provider agreement exists that includes terms andconditions defining a digital wallet associated with the prepaid mobilestaging account provided to the consumer by the issuer FI.
 3. The methodof claim 2, wherein the user interface provider agreement specifiesfees, commercial terms, and restrictions.
 4. The method of claim 1,further comprising transmitting, by the staging account providercomputer to an issuer FI computer associated with the issuer FI of theconsumer's financial account, a confirmation message indicatingsuccessful setup of the consumer's mobile staging account.
 5. The methodof claim 1, further comprising, prior to receiving the request toprovision a prepaid mobile payment staging account, loading, by a mobiledevice provider, the prepaid staging account application program on theconsumer's mobile device.
 6. The method of claim 1, wherein theconfirmation message comprises an indication of the amount of moneyfunding the consumer's prepaid mobile staging account.
 7. The method ofclaim 1, wherein the mobile device provider partners with a mobilenetwork operator (MNO) to offer mobile devices for sale that include theprepaid staging account application program.
 8. A non-transitorycomputer readable medium storing prepaid mobile payment staging accountprovisioning instructions configured to cause a processor to: receive arequest to provision a prepaid mobile payment staging account from aprepaid staging account application program of a consumer's mobiledevice, the request including identification information comprising atleast a mobile device identifier; associate the identificationinformation with a prepaid mobile staging account; identify a financialaccount of the consumer held by an issuer financial institution (FI)based on the identification information; generate a consumer prepaidmobile staging account loaded with funds from the financial account ofthe consumer; and transmit a confirmation message to the consumer'smobile device indicating successful setup.
 9. The non-transitory storagemedium of claim 8, further comprising, prior to the instructions togenerate the consumer prepaid mobile staging account, instructionsconfigured to cause the processor to determine, based on theidentification information, that a user interface provider agreementexists that includes terms and conditions defining a digital walletassociated with the prepaid mobile staging account provided to theconsumer by the issuer FI.
 10. The non-transitory storage medium ofclaim 8, further comprising instructions configured to cause theprocessor to transmit a confirmation message indicating successful setupof the consumer's mobile staging account to an issuer FI computerassociated with the issuer FI of the consumer's financial account.
 11. Asystem comprising: a consumer mobile device; a staging account providercomputer configured for communication with the consumer mobile device;and an issuer financial institution (FI) computer operably connected tothe staging account provider computer; wherein the staging accountprovider computer comprises a communications device, a processoroperably coupled to the communications device, and a storage deviceoperably connected to the processor, wherein the storage device storesinstructions configured to cause the processor to: receive a requestfrom the consumer's mobile device to provision a prepaid mobile paymentstaging account, the request including identification informationcomprising at least a mobile device identifier; associate theidentification information with a prepaid mobile staging account;identify a financial account of the consumer held by the issuer FI basedon the identification information; generate a consumer prepaid mobilestaging account loaded with funds from the financial account of theconsumer; and transmit a confirmation message to the consumer mobiledevice indicating successful setup.
 12. The system of claim 11, whereinthe storage device stores, prior to the instructions to generate theconsumer prepaid mobile staging account, further instructions configuredto cause the processor to determine, based on the identificationinformation, that a user interface provider agreement exists thatincludes terms and conditions defining a digital wallet associated withthe prepaid mobile staging account provided to the consumer by theissuer FI.
 13. The system of claim 11, wherein the storage device storesfurther instructions configured to cause the processor to transmit aconfirmation message indicating successful setup of the consumer'smobile staging account to the issuer FI computer.
 14. The system ofclaim 11, further comprising a mobile platform operably connected to theconsumer mobile device, wherein the mobile platform loads the prepaidstaging account application program on the consumer's mobile devicebefore the staging account provider computer receives the request fromthe consumer's mobile device to provision a prepaid mobile paymentstaging account.
 15. The system of claim 14, wherein the mobile platformcomprises a mobile network operator (MNO) that offers mobile devices forsale to consumers that include the prepaid staging account applicationprogram.